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The SEC v. Investors

The mutual fund lobby loves Mary Schapiro.

Updated Feb. 3, 2010 12:01 a.m. ET

The Securities and Exchange Commission under Chairman Mary Schapiro is turning into a special-interest refuge. Along with her instruction to add global warming to corporate disclosures, last week she bowed twice to the mutual fund lobby, also at the expense of investors.

The SEC voted last week to keep recognizing a select group of private credit-ratings agencies to determine if money-fund assets are safe. The mutual fund industry loves this, and lobbied hard for it, because the policy lets fund managers avoid the hard...